SAIC provides elite cyber security, data analytics, and systems engineering services primarily for the U.S. federal government with growing commercial exposure.
SAIC offers compelling value for investors seeking exposure to the critical cyber security and defense infrastructure market with a proven ability to execute on complex federal mandates. The company's aggressive capital return program, evidenced by $558M in share repurchases, signals management confidence in future cash flow generation and commitment to shareholder yield.
Investors should remain cautious given the sharp year-over-year drop in net income from $477M to $362M, which may indicate margin compression or one-time charges affecting earnings quality. The company's heavy reliance on government spending makes it highly sensitive to political shifts and budget cuts, while a current cash balance of only $56M limits operational flexibility during economic downturns.
Science Applications International Corporation (SAIC) is a premier global technology services provider specializing in information assurance, cyber security, and mission-critical systems engineering. Serving the U.S. Department of Defense, intelligence agencies, and commercial markets, SAIC delivers advanced solutions across data science, cloud infrastructure, and logistics. The company leverages its deep government contracts and proprietary technologies to secure national interests while expanding into high-growth commercial sectors.
Despite a slight revenue dip to $7.48B, SAIC delivered strong profitability with $362M in net profit, though this represents a notable decline from the previous year's $477M peak. The company maintained robust operating cash flow of $494M, partially offset by significant share repurchases of $558M and substantial debt reduction efforts evident in the financing cash flows.
The defense technology services industry is characterized by high barriers to entry, long-term contract cycles, and an urgent demand for cyber resilience against evolving state-sponsored threats. Companies in this sector face intense competition from both traditional primes and agile tech startups, driving a need for continuous innovation in AI-driven threat detection and secure cloud architectures.
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $7.70B | $7.44B | $7.48B |
| Cost of Revenue | $6.82B | $6.57B | $6.59B |
| Gross Profit | $888.0M | $872.0M | $892.0M |
| Operating Expenses | $387.0M | $131.0M | $329.0M |
| Operating Income | $501.0M | $741.0M | $563.0M |
| R&D | $1.0M | $4.0M | $12.0M |
| G&A | $374.0M | $373.0M | $339.0M |
| Stock-Based Comp | $48.0M | $68.0M | $53.0M |
| D&A | $32.0M | $26.0M | $25.0M |
| Amortization | $125.0M | $115.0M | $115.0M |
| Other OpEx | $12.0M | $-246.0M | $-22.0M |
| Non-Operating Income | $-126.0M | $-121.0M | $-135.0M |
| Interest Expense | $120.0M | — | — |
| Pre-Tax Income | $375.0M | $620.0M | $428.0M |
| Income Tax | $72.0M | $143.0M | $66.0M |
| Continuing Ops | $303.0M | $477.0M | $362.0M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $303.0M | $477.0M | $362.0M |
| Minority Interest | $3.0M | $0 | $0 |
| Net to Common | $300.0M | $477.0M | $362.0M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Current Assets | $1.20B | $1.13B | $1.15B |
| Cash & Equivalents | $109.0M | $94.0M | $56.0M |
| Accounts Receivable | $936.0M | $914.0M | $1.00B |
| Inventory | $71.0M | $3.0M | — |
| Other Current Assets | $81.0M | $120.0M | $98.0M |
| Long-Term Assets | $4.35B | $4.18B | $4.09B |
| PP&E (Net) | $92.0M | $91.0M | $104.0M |
| Goodwill | $2.91B | $2.85B | $2.85B |
| Operating Leases | $158.0M | $152.0M | $164.0M |
| LT Securities | $28.0M | $32.0M | $36.0M |
| Other LT Assets | $1.16B | $1.06B | $937.0M |
| Total Assets | $5.54B | $5.31B | $5.25B |
| Current Liabilities | $1.13B | $1.16B | $1.40B |
| Accounts Payable | $624.0M | $567.0M | $631.0M |
| Current Debt | $31.0M | $77.0M | $313.0M |
| Current Leases | $42.0M | $39.0M | $20.0M |
| Other Current Liab | $429.0M | $475.0M | $432.0M |
| Long-Term Liabilities | $2.71B | $2.37B | $2.27B |
| Long-Term Debt | $2.34B | $2.02B | $1.91B |
| LT Operating Leases | $152.0M | $147.0M | $173.0M |
| Other LT Liab | $218.0M | $202.0M | $193.0M |
| Total Liabilities | $3.84B | $3.53B | $3.67B |
| Shareholders' Equity | $1.70B | $1.78B | $1.58B |
| Retained Earnings | $1.03B | $1.43B | $1.56B |
| AOCI | $22.0M | $16.0M | $12.0M |
| Total L&E | $5.54B | $5.31B | $5.25B |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $303.0M | $477.0M | $362.0M |
| Non-Cash Adjustments | $334.0M | $-270.0M | $50.0M |
| Working Capital Changes | $-105.0M | $189.0M | $82.0M |
| Cash from Operations | $532.0M | $396.0M | $494.0M |
| Capital Expenditures | $25.0M | $27.0M | $36.0M |
| Cash from Investing | $-36.0M | $314.0M | $-35.0M |
| Share Buybacks | $267.0M | $382.0M | $558.0M |
| Dividends Paid | $83.0M | $79.0M | $75.0M |
| Cash from Financing | $-493.0M | $-725.0M | $-498.0M |
| FX Effect | $0 | $0 | $0 |
| Net Change in Cash | $3.0M | $-15.0M | $-39.0M |
| Beginning Cash | $115.0M | $118.0M | $103.0M |
| Ending Cash | $118.0M | $103.0M | $64.0M |
The financial profile suggests a dominant focus on Government Services (Defense/Intelligence) driving revenue of $7.48B, complemented by Commercial Information Assurance and specialized Logistics & Systems Engineering segments. The significant R&D spend relative to size indicates heavy investment in proprietary cyber tools and data science capabilities.
High concentration risk due to over-reliance on U.S. federal appropriations which face budgetary uncertainty; potential for significant cost overruns on large-scale DoD contracts impacting operating margins; cybersecurity breach liabilities given the sensitive nature of their client data; and regulatory headwinds from proposed executive orders restricting technology access.
SAIC's primary moats are its decades-long track record with classified government contracts creating high barriers to entry, a massive installed base of mission-critical systems generating sticky recurring revenue, and a specialized workforce skilled in niche cyber warfare and quantum computing applications.
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.